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HomeMy WebLinkAboutStaff Report 3.E 05/21/2018Agenda Item #3.E p5.L� zs5$ DATE: May 21, 2018 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Tim Williamsen, IT Manager--- SUBJECT: anagerSUBJECT: Resolution Authorizing the City Manager to Enter into a Lease Purchase with Key Government Finance, Inc. in the Amount of $125,764.22 including Maintenance Agreements and Execute All Other Documents Necessary to Purchase the Equipment, Software, Installation and Maintenance Services from AMS.Net to Upgrade the Voice System Servers RECOMMENDATION It is recommended that the City Council approve the attached Resolution Authorizing the City Manager to Enter into a Lease Purchase with Key Government Finance, Inc. in the Amount of $125,764.22 including Maintenance Agreements and Execute All Other Documents Necessary to Purchase the Equipment, Software, Installation and Maintenance Services from AMS.Net to Upgrade the Voice System Servers. BACKGROUND The telephone system in use by City employees was installed in 2006. Prior to 2006 the City used an ATT -specific system called "Centrex." The old system lacked features found in moremodern systems such as voicemail indicators and forwarding, conferencing, multi -line capability, number directory, email integration with voicemail and call history. The phone system was upgraded in 2006 to a system utilizing_Ciseo's Voice Over IP (VoIP) technology. The phone system was again upgraded in 2012, to keep the system within a version supportable by the vendor and to add the Emergency Responder (9-1-1 caller information) capability. The system utilizes the already -in- place data network which is used for computers. The necessary equipment, software, and installation services were acquired under a 57year lease. The central portion of the City's telephone system, the main voice servers, has reached the end of manufacturer support, thus repair response and normal updates are no longer available for the models currently in service at the City. As well, vendor maintenance contracts are no longer available. Among the Information Technology goals included in the 2017-2018 budget includes replacement of the voice system servers. DISCUSSION The installed system relies on computer network servers. It is vital to the operation of the phone system that this server hardware and software be up to date and supportable by the manufacturer. IT relies on manufacturer support for rapid diagnosis and recovery from problems. Staff proposes the addition of paging and announcing features in this upgrade. To efficiently and safely serve public needs, a means of alerting, announcing, and paging is desirable. To date, no such system has been in service in City Hall. A recent development in the phone system now allows addition of such features, while keeping the expenditure comparable to prior lease payments. The added feature is a product called Informacast Singlewire. The phone system is a technology designed and sold by Cisco. Cisco only sells through qualified resellers. AMS.Net is a preferred platinum reseller, conducts product sales on behalf of Cisco, renders support on behalf of Cisco, and has done all configuration and installation of the City's phone system since initial installation in 2006. The City, needing to limit expenditures, engages in equipment leasing. Leasing the Cisco phone system, initially, and with subsequent upgrades, has been a satisfactory acquisition vehicle. The leasing company utilized by Cisco and AMS.Net is Key Government Finance. The City has in place a master lease agreement with Key Government Finance. Staff has. obtained a quote from AMS.Net for the full replacement of voice server hardware, software, and installation and maintenance services. This quote has been provided under a competitively bid contract that was awarded to AMS.Net by the County of Merced. In accordance with City's Municipal Code 4.04.100, the City may utilize cooperative purchasing to purchase goods and services that have been already bid and awarded by other public agencies. Utilizing the existing Key Government Finance Master Lease Agreement, the City can add the proposed acquisition as a schedule by submitting an application. The primary advantages, in the approach to using the cooperative purchasing, are to maintain equipment and software compatibility and limit maintenance expenses otherwise experienced in a diverse system. Secondarily, utilizing cooperative purchasing assures competitive pricing, and saves valuable staff time that would otherwise be used in preparation of specifications, bid documents, and the bidding process. FINANCIAL IMPACTS To distribute the costs over the life of the equipment, five years, a lease purchase is recommended. Lease payments are to be made yearly, over five years, for an annual cost of $25,926.81. The full acquisition price of this proposal is $125,764.22. The cost includes hardware, software, labor for installation, configuration, training, and hardware/software maintenance. The full costs of the project are supported in the IT fund budget. ATTACHMENTS Resolution 2 ATTACHMENT 1 RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE PURCHASE WITH KEY GOVERNMENT FINANCE, INC. IN THE AMOUNT OF $125,764.22 INCLUDING MAINTENANCE AGREEMENTS AND EXECUTE ALL OTHER DOCUMENTS NECESSARY TO PURCHASE THE EQUIPMENT, SOFTWARE, INSTALLATION AND MAINTENANCE SERVICES FROM AMS.NET TO UPGRADE THE VOICE SYSTEM SERVERS WHEREAS, the City of Petaluma utilizes a functioning, integrated telephone and voicemail system for the performance of all business and administrative functions; and WHEREAS, the existing system is no longer supported by the manufacturer; and WHEREAS, the continued use of the existing phone system is required to accomplish the necessary administrative and business functions; and WHEREAS, the existing Master Agreement between the City and Cisco Capital / Key Government Finance allows for additional lease purchase equipment acquisition; and WHEREAS, ,Petaluma Municipal Code section 4.04. 100 provides an exception to City competitive bidding for purchases of supplies and equipment made under a cooperative purchasing program with the state, county or other public agencies; and WHEREAS, cooperative purchases joined will have been competitively awarded, and documentation as to the advantage of the cooperative purchase will be retained; and WHEREAS, the acquisition of replacement voice servers from AMS.Net is being made through cooperative purchasing and a competitive, bid awarded by the County of Merced; and WHEREAS, among the advantages of this cooperative purchase is that the City is able to maintain equipment and software compatibility and limit maintenance expenses otherwise experienced in a diverse system; and WHEREAS, utilizing cooperative purchasing assures competitive pricing, and saves valuable staff time and expense that would otherwise be used in preparation of specifications and bid documents. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma authorizes the City Manager to execute lease purchase documents to replace the voice system servers in the amount of $125,764.22, including maintenance agreement, and to execute all other documents necessary to purchase the equipment, software, installation and maintenances services from AMS.Net. 3